He added inflation will simply be the product of demand and supply conditions in the long run and limited access to single market could bring down investment, trade as well as immigration. In the long run this could hurt supply potential of the economy.

Experts believe the Brexit effect may not be of long-term in terms of inflammation and interst rates could be increased in long run.

Samuel Tombs at Pantheon Macroeconomics, said: “Sterling’s sharp depreciation is entirely responsible for the pick-up in CPI inflation in July.”